Which car brands generate the highest profit margins?

Although stores selling the Lexus, Audi, Infiniti and Acura luxury brands are seeing double-digit profit declines this year, profits at Toyota and Honda dealerships are growing. Nissan and Acura dealers experienced the biggest declines. Alan Haig, president of buy-sell advisory firm Haig Partners in Fort Lauderdale, Fla, said that this is the first time such data has been published.

He claims that this visibility into earnings will give owners, buyers and sellers insight into what they should be doing. He also added that this can also spark conversation between dealers and automakers on ways to improve. Jaguar/Land Rover reported the highest profit per franchise: $3.3 million. Because Land Rover, as a small niche brand, can “make more profits off each car and their expense structure is lower, they can net more profit,” Haig said. Overall, estimated year-over-year profits on luxury brands were down for two reasons: (continue reading)

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